Some people equate real estate investing with playing the lottery. They are under the impression that it is all about being in the right place at the right time and that makes them take either of two possible mindsets. These people will either leap into the game without looking , or they'll steer clear of investing altogether, seeing it as nothing but a fraud.
Though a certain degree of skepticism is an admirable personality trait, it isn't good for someone to be so skeptical they never even try. Robert Kiyosaki's Rich Dad series portrays real estate investing as to be easy. Too easy, really, if you fail to see that the Rich Dad books are simply meant to prepare the future investor to educate himself further on real estate investing. The series itself isn't a comprehensive education in investment, just a primer.
After reading a couple of Kiyosaki's books, you will understand the rudiments of real estate, and why anybody can grow into a prosperous real estate investor. Skeptics who are not so skeptical they believe the whole thing is a crock, will realize that there is much more to learn about real estate investment.
The wise skeptic (as opposed to the cynic) realizes that doing one's homework plays an essential role in the ultimate success or failure of an investor. It is essential to understand the way in which one must do that research and what details one must gain from it, and one must proceed to put that knowledge into practice by putting in the effort to actually do that research.
Investors ought to study up on the areas of the country in which they can see themselves investing, learning about the pertinent economic factors, whether the area is attracting people in or repulsing them, whether businesses are entering the area or businesses are closing up shop. These are just a couple of the things an investor must know regarding an area in which he plans to invest, but they are extremely important.
The true skeptic knows that just because he reads an area is doing wonderfully, it doesn't mean no further research is in order. The relevant facts must be checked and rechecked with more than one or two sources. Cities must be visited. Officials of the city must be met with. Experts should be consulted.
A wise skeptic never makes assumptions. Skeptics do their research, as do good investors. Successful investors allow experts to lead them to more experts. They question politicians and businessmen in the area. They get the relevant authorities to back up their impressions rather than simply giving glowing reports on their city.
The process is about putting in the work to get the information you need. The smart investor isn't afraid to ask questions and lots of them. A little bit of skepticism never hurts.
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